Evolution Equity Partners announced the final closing of Evolution Technology Fund III, LP, and total capital commitments of $1.1 billion to invest in visionary entrepreneurs building next-generation cybersecurity companies. This fundraising was oversubscribed by existing and new limited partners, representing a mix of institutions, sovereign investors, insurance companies, endowments, foundations, fund of funds, family offices, and high-net-worth individuals.
This capital gives Evolution Equity Partners a dedicated pool of capital for pursuing opportunities for investment ranging from $20 million to $150 million in cybersecurity and in companies utilizing machine learning and AI to build market-leading platforms. Some of the significant investments made so far by Evolution include SecurityScorecard, Arctic Wolf, Protect AI, Talon Cyber, Torq, Snyk, Sweet Security, Aqua Security, Oleria, Halcyon, Cybsafe, Phosphorus, DefinedAI, Carbon Black, Panaseer, AVG Technologies, OpenDNS, Pentera, and Quantexa.
Evolution Equity Partners was launched by investor and technology entrepreneurs Richard Seewald and Dennis Smith, who manage and lead the firm and a specialist team of 30 professionals based out of New York City, Palo Alto, London and Zurich. The team members previously worked as founders, operating executives and investors in leading software companies worldwide.
Evolution Equity Partners’ Centers of Excellence for Cybersecurity Growth, the firm’s high-performance engine, aims to provide the ultimate operating playbook on how to effectively take cybersecurity startups from idea to IPO and equip companies with the knowledge, tools, and strategy to drive performance.
KEY QUOTES:
“The overwhelming success of this fundraise was driven by strong support from both existing and new investors who recognize and support our cybersecurity-focused investment strategy and our ability to build value and generate liquidity across market cycles. In one of the toughest-ever fundraising environments, we are grateful for the tremendous support. Given this backdrop, we remain disciplined about investment pacing and prioritizing high-conviction next-generation cybersecurity investment opportunities driven by companies that are safeguarding the digital world. Additionally, our approach to portfolio diversification, coupled with decades of investment, technical and operating experience fundamentally drives our consistency.”
– Richard Seewald, Founder and Managing Partner at Evolution Equity Partners
“We are still in the early innings of a secular trend in the cybersecurity space that involves increased spend by large enterprises, smaller businesses and consumers alike, a rapidly expanding attack surface, market consolidation and demand for next generation products and services that makes this a very compelling segment for investment. We are experiencing unprecedented disruptive forces including the impact of AI and machine learning, accelerated digitalization and increasingly sophisticated adversaries in a highly complex geopolitical environment. Cybersecurity companies have boundless opportunity to embody their innovations and leverage creativity for sustainable benefit to society. Evolution Equity Partners is proud to continue to back leading cybersecurity companies.”
– Founder and Managing Partner Dennis Smith
